Real Estate Not Pillar Industry

For some time now, the real estate industry has been widely regarded as a pillar industry in many localities. As a result, maintaining a steady increase in housing prices has become vital to the governments in regulating the property market. However, for fear of damaging this "cash cow," to date no regulatory policies have really been effective.

In reality the real estate sector has never been a pillar industry in the real sense, either in terms of direct or indirect financial contributions. For example, among China's top 300 corporate taxpayers, none is from the real estate sector. On the other hand, people tend to believe that a booming housing market will promote the development of a long industrial chain, which consists of sectors such as steel making, building materials and home improvement. Paradoxically, in face of soaring housing prices, homebuyers would have to cut their expenditures in other areas. Inevitably buying a home will take up all a family's savings.

The real estate industry only brings wealth to the wealthy, never the masses. To a large extent, it is the rapid economic growth that is promoting the property market, but we can never expect the rocketing housing prices to drive China's prosperity.

It seems ridiculous to honor an industry that provides products out of the reach of 70 percent of citizens, and label it a "pillar industry."

The Beijing News

Flagrant Disregard of Ban

A recent nationwide survey shows that 52 percent of the respondents are opposed to education authorities' ban on extra classes in primary or middle schools.

What is behind the unpopularity of a policy designed to prevent students from being overloaded with work? The key lies in the large demand for such classes. Furthermore, why is there such a huge demand? The fundamental cause is the exam-oriented education. With the college entrance examination looming, no one wants to be left behind because they took less classes than others. Hence, despite the ban, extra classes are still very popular. To facilitate the program there exists tacit cooperation among the teachers, parents and students. No one will report the ban violation to relevant departments.

Extra classes will not disappear as long as the scoreline is the only criteria to judge whether a student can be admitted into college or not.

Guangzhou Daily